Melbourne Businesses Fear Covid-Style Wipeout from Work-From-Home Fuel Plan
Melbourne business owners are expressing deep fears that proposed work-from-home mandates, intended to alleviate pressure on Australia's fuel supplies, could trigger a devastating economic collapse reminiscent of the Covid-19 lockdowns. The debate has been reignited following urgent recommendations from the International Energy Agency (IEA) for countries to adopt fuel-saving measures amid global supply pressures.
Businesses Still Reeling from Historic Lockdowns
Slate Bar Restaurant manager Ily Yildrim revealed to the Daily Mail that businesses in Melbourne's central business district continue to face severe hardship, six years after the initial Covid lockdowns devastated the state. "We're still seeing the effects of Covid because business has only gotten back to about 60 percent since pre-Covid levels," he stated. Melbourne endured the world's longest lockdown, with draconian stay-at-home orders and travel restrictions lasting a total of 262 days under then-Premier Dan Andrews.
Yildrim explained that current patterns already cripple trade. "Most CBD workers already take Monday and Friday off to have a long weekend, so we already decided to close Mondays, and now Fridays are a bit hit and miss," he said. "The proposed work-from-home idea to save petrol definitely won't help. Rents aren't going down, but we have lost a lot of customers. It's literally killing the business."
Fuel Crisis Compounds Existing Struggles
The situation is exacerbated by a severe fuel shortage affecting Australia. Global supply pressures from the Middle East have left 187 petrol stations without diesel in New South Wales and 83 in Victoria, while prices soar above $3 per litre. Energy Minister Chris Bowen stated on Sunday that it was a "good idea" for Australians to heed the IEA's advice to work from home where possible.
However, Yildrim fears this approach will make an already hard situation nearly impossible. "Now, on top of increased costs from suppliers due to rising petrol costs, we may have to deal with increased work-from-home measures. It's getting to be impossible," he lamented. His business has been forced to rely almost solely on special functions and events for survival. "Foot traffic is almost non-existent. If it wasn't for events, we'd be done," he admitted.
Calls for Government Intervention and Permanent Support
Yildrim urged governments at every level to develop a "permanent" plan to assist traders, criticizing temporary measures as insufficient. "The government needs to help more. It's always something temporary, but Victoria is the hardest state to do business in. We need permanent help," he argued. He suggested alternatives like free public transport instead of encouraging people to stay home. "Maybe instead of telling people to stay home to save petrol, they could give free public transport instead, at least give free Myki three or four days a week. Try something to help business."
Minister Bowen, speaking on the ABC's Insiders program, acknowledged that working from home is a "good idea if possible" and has become an important part of Australian working life. He added that not everyone can work remotely but people "should explore options to minimise fuel use." Other IEA suggestions include avoiding travel and driving 10 km/h slower to offset oil shortages due to conflict in the Middle East.
Expert Warns of Escalating Fuel Security Crisis
Meanwhile, a leading Australian fuel security expert has issued a stark warning. Macquarie University senior lecturer in applied finance, Dr. Lurion De Mello, told the Daily Mail that the escalating war in Iran could leave the nation starved of vital fuel supplies within three weeks. With the Strait of Hormuz effectively closed due to skyrocketing insurance costs and fear among tanker operators, Dr. De Mello expects supplies to dwindle by April 13.
"The Iranians are giving mixed messages, saying the Strait of Hormuz is not closed, but it's mostly the insurers who are not providing coverage, so tankers are too scared to go through it," he explained. He criticized the government for being "asleep at the wheel" regarding fuel reserves, noting the low penetration of electric vehicles.
Dr. De Mello highlighted diesel as the biggest concern, as it is intrinsic to national infrastructure for trucks, farming, fishing, mining, and backup generators. "Seafood prices will go up, freight costs will rise—everything gets passed on," he warned. Panic buying is worsening shortages, with independent stations running dry first as major distributors prioritize their own networks.
Nationwide, 91 octane unleaded petrol is selling for between $2.40 and $2.50 per litre, while diesel edges closer to topping $3.00. Dr. De Mello predicted prices could climb much higher, drawing parallels to the Russia-Ukraine invasion. "I'm surprised it's not even closer to $3 yet... it'll definitely keep creeping up," he said.
The Albanese Government maintains Australia has a demand problem, not a supply problem, with panic buying fuelling shortages. However, with businesses like Slate Bar struggling to survive, the proposed work-from-home measures represent a potential tipping point for Melbourne's economic recovery.
